[ SEASON 2 | Week 6 ] Steemit Crypto Academy Homework Post for @fendit | Elliott Wave Theory |
Hello friends .... !!!
Back again with me Ichsan Angga P at Steemit Crypto Academy Homework.
Today I will finish the homework from professor @fendit.
The topic that I will choose to discuss from the work given by the professor @fendit This week's assignment is about Elliott Wave Theory
What is the application of this theory?
Discussing this theory, from my point of view this theory is very good to be applied in analyzing the crypto market that we will trade, which this theory requires us to be more careful in reading the trend movements that are happening in the crypto market. In analyzing using this theory you have to be patient and have to be able to decide when is the right time for you to buy and sell in the market you are reviewing. We also need to read the impulse wave movement and corrective wave that occurs, along with the trend movement, whether it is heading for a bearish or bullish direction, and also don't forget to place stops to keep your crypto assets from making mistakes due to your own hasty actions. in analyzing market movements.
What are Impulse Waves and Corrective Waves?
So for us to be able to do a corrective so that we get the trade we want we need to know the impulse wave, where this impulse wave is 5 patterns that are formed and has an aim in the market trend, while for the corrective are 3 patterns that are formed in the opposite direction of the market trend. impulse wave. Both of these we see through the ups and downs of prices on crypto assets that occur. As we know that most of the trends occur due to Elliott waves that appear on the crypto market.
If we return to the previous task that discussed how we behave and how we hold our emotions to trade on this crypto market for the sake of a mistake that arises from wrong analysis, but on Elliott's wave we have to look at the mix of emotions and market movements due to volume of people do trade.
It would be very difficult for us to make a prediction that appears on the crypto asset that we analyze, but we can easily make a crypto market prediction by looking at some human traits who have lust and greed for the uptrend, and have a fear of the condition of the asset that is experiencing it. downward trend. This is where Elliott's waves emerge and work by utilizing human behavior that is always easy to read about their greed to predict future price movements.
How can you identify them?
In this wave, it will always occur routinely which appears in Garifk exposure with a different time for each wave. So we can identify through the difference between the lengths from the start the wave is formed until the end of the wave occurs, here are some basic rules that must be known.
Here is a sequence of rules that you must know to read this wave:
We have to look at wave 2, which wave 2 will not be able to be backed up by wave 1. If this doesn't happen, then we should not have to trade because the information that appears is uncertain and too risky.
The second rule is that the length of wave 3 must exceed the length of waves 1 and 5, otherwise avoid trading your assets.
In the third rule, namely that the wavelength 4 must not be covered from a value below the resistance found in wave 1, because it will be dangerous if this signal does not appear.
And the last rule is where this is the rule that you have to look carefully, that is where wave 4 is strictly prohibited if it is longer Wave 4 than wave 2, don't trade your assets.
What do you think about this theory? Why?
In my opinion, all the theories that emerge about analysis in the crypto world are all very useful, so in my opinion it is traders who must have experience and should deepen into crypto market analysis. To become a pro you will go through a phase where at first you will find it difficult to read the patterns and distinguish the waves that occur, so it will take time to learn about this wave reading. Even a skilled trader can have difficulty seeing and distinguishing the current waves.
Many traders have an opinion about the Elliott Wave Theory, in which they have the opinion that the Elliott Wave theory is not completely correct for the results obtained, because the Elliott Wave theory does not have standards or role models that are used as specific rules in using it.
Doing analysis using wave theory will have better results if we use it in conjunction with other reading indicator tools, which of the several indicators used in conjunction with Elliott Wave theory will produce valid information for traders. Simultaneous use will have a higher success rate and increase your chances of profiting from the crypto market. To play it safe and to avoid unwanted situations, it would be better if we use stop losses to secure our assets.
Pick a coin and on its chart, indicate where the full cycle of the impulse and correction waves is located. Explain in detail what you see. You must include screenshots and name which currency you are analyzing.
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Here I will take an example of a chart on BTC / IDR trading, so let's see and try to learn about the current trend on the BTC / IDR market chart, here are the results.
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Impuls Wave
Here I take an example of BTC / IDR on January 3, 2021, starting at the initial price in wave 1 worth IDR 420,000,000 and the final price in wave 1 worth IDR 490,000,000, then in wave 2 the price decreases to the final price of IDR 428,000,000, then in wave 3 there is a drastic increase to a peak worth Rp. 588,000,000, wave 3 is supposed to be the longest wave than wave 1, then in wave 4 it has a final value of Rp. 458,000,000, keep in mind for that wave 4 wave 1 and wave 3 are not allowed to exceed the value limit, and the last wave 5 has an initial value of Rp.458,000,000 and an end price of Rp.558,000,000.
Corrective Waves
Here is part of seeing the corrective waves that occur, you can see that waves A and C are experiencing a Bearish trend, while in Wave B there is a Bullish trend, for the wavelength here Wave C has a wavelength that exceeds the wavelength of Wave A. So the decline in wave A was due to crypto asset traders selling their trades so that there was a decline, then in Wave B there was another increase as a result of the correction in wave A, so traders took steps to immediately buy, and for Wave C again experienced a decline as a result of panic of the traders who sell so that prices have decreased.
Conclusion
In this task regarding Elliott Wave Theory, we can conclude that, Elliott Wave Theory is as good as the function and purpose of analyzing and reading market trends that occur in the crypto world, but will get maximum results, if the Elliott Wave Theory is used together. with other crypto asset analysis indicators, because if we only use the Elliott Wave Theory, it will be a little risky because we cannot compare the analysis that occurs on the asset we want to trade.
Last word
The tasks that I have completed on this occasion regarding Elliott Wave Theory, apologize if my post is still far from perfect and there will be many mistakes, let's fix it together through constructive friends' comments.
Thank you to all of you who have read my post, I hope my post can be useful for all of you.
Regards
@ichsananggap
Notes: All of these images are from my screenshots and are my own edits.
Thank you for being part of my lecture and completing the task!
My comments:
I'm not really convinced by your work, from one moment to another it looks as if you had copied things from different places and just spinned the words...
Overall score:
3/10